Health Savings Account

HSAs are created to accompany High Deductible Health Plans (HDHP), such as UVA’s Basic Health Plan. They work like a personal bank account, giving you the opportunity to take money from your paycheck before it’s taxed and use it to pay for health care expenses, prescriptions, and over-the-counter health products. In addition to your own contributions, UVA puts money in your HSA. Funds in these accounts roll over each year and are yours to keep for future health care costs, even if you switch to Choice or Value Health or leave UVA. Learn more about how to maintain your account in these cases (administrative fees apply).

Video: Information about UVA’s Basic Health Plan and accompanying HSA view full screen

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Chard Snyder

UVA’s HSAs and Flexible Spending Accounts (FSAs) are managed by Chard Snyder.


Opening an HSA

Eligibility

  • Most active, benefits-eligible employees enrolled in Basic Health are able to have an HSA

  • You are not eligible for an HSA if you

    • are a wage employee
    • hold a J-1 visa
    • are enrolled in Medicare or Medicaid or are listed as a dependent on someone else’s tax return
    • have a balance in a health care FSA, or a spouse has a balance in a health care FSA (you also are not eligible if you or your spouse has a balance during any part of a Flexible Spending Account grace period, or if the plan year for you or your spouse is not over)
    • received health care benefits from the Veterans Administration (TRICARE) within the last three months
    • have a spouse or parent who is enrolled in a health care plan that provides the employee with benefits (including a Health Reimbursement Account [HRA] offered by an employer) before the employee has met the IRS minimum deductible for the year
    • already contributed the annual federally-set limit to another HSA, Medical Savings Account (MSA), or HRA in the same calendar year
  • Dependent Eligibility: You may only use funds for your dependents if they are claimed as such on your taxes


Rules for Contributions and Maintenance

Timeline

  • Contributions are accepted starting the month after the HSA opens; UVA will make its annual contribution at this time (during the coinciding pay period)
  • Deposited funds become available for use on the third bank day after payday
  • Banking forms are completed during initial Basic Health enrollment to allow employer/employee deposits (additional info may be required; you’ll be contacted and must act if this is the case)
  • UVA will not make retroactive changes to excess contributions or deductions

Switching from FSA to HSA

If you do not have a zero balance in your FSA by January 1

  • your HSA cannot be opened and you cannot make employe contributions until April 1
  • UVA’s annual employer contribution will be pro-rated (you will forfeit the employer contributions for January, February, and March)
  • deposited funds become available for use on the third bank day after payday
  • you may not use money in your account to cover expenses incurred prior to April 1

Contribution Limits

The following limits reflect the total minimums and maximums, the sum of you and your employer’s contributions. Limits are per household; if you and your spouse both have HSAs, you cannot contribute more than the limit between the two of you. You are not required to make a contribution.

  • Your Minimum Annual Contribution: $120
  • Your Maximum Annual Contribution: $3,450 for an employee; $6,850 for a family
  • UVA Annual Employer Contribution: $1,000 for employee only; $1,500 for employee plus spouse, child(ren), or family
  • Pre-tax contributions can be made by employees and employer up to the IRS annual limit, and for age 55 and older there is a catch-up limit of an additional $1,000

UVA Contributions

  • The annual employer contribution from UVA will be prorated in the following instances:
    • new hire enrollments and employees who are newly eligible for benefits
    • employees who have delays in opening their HSA accounts
  • UVA employer contributions will not change for any employee who gains or loses a dependent in the same calendar year

Use and Maintenance

  • Used for eligible health care, dental, and vision expenses

  • HSAs can be used with a dental/vision-only Limited Flexible Spending Accounts

  • Access money in your account using your prepaid benefits debit card (Benny Card)

  • Balances roll over each year and accrue interest, and you keep the balance even if you leave UVA

  • Once you have a balance of $4,000 in your HSA, you may invest it in mutual funds; any growth made from the investment is tax-free as long as it is used on eligible medical expenses (refer to HSA Instructions in the resources below for details)


Resources